Hungarian government to reform the system of state-backed capital funds

The government has decided to centralise the operation of all state funds supporting businesses, Economic Development Minister Márton Nagy said on Monday.

The measure will impact all funds that operate under the umbrellas of the Hungarian Development Bank (MFB) and Magyar Eximbank, Nagy said. The step aims to establish a more efficient, more effective and faster system for getting credit, capital and guarantees to businesses, he added.

He noted that the funds have around 1,000 billion forints (EUR 2.4bn) in resources that have not yet been pumped into the Hungraian economy.

In future, any new state funds will be established only through the National Capital Holding Company, Nagy said.

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